Affiliate marketing events

Events

There are a wide range of 2009 Affiliate Marketing events around the world. Please find below a list of key events.

Event : CAC Amsterdam 2008
Date : March 30-31, 2009
Venue : NH Grand Krasnapolsky Hotel
Details : The 7th Annual Affiliate Convention taking place in Amsterdam will focus on European affiliate marketing and advertising. Attending will be high revenue producing , marketing / advertising firms, affiliate managers, portal webmasters, telecommuniication executives and other retail operators.

Event : Pay Per Click (PPC) Summit Chicago
Date : April 22-23, 2009
Venue : DoubleTree Hotel Chicago - Oakbrook
Details : Search Engine Marketing educational conference teaches online marketers how to make more money with Pay Per Click advertising. During two-days of comprehensive training in cities across the U.S., PPC Summit offers laser-focused educational sessions to help online advertisers increase their ROI and maximize their marketing dollars.

Event : a4u Expo Europe 2009
Date : April 28-29, 2009
Venue : RAI Amsterdam
Details : We'll challenge the way you think about Affiliate Marketing and give you real, practical take home strategies on how to improve your performance within the channel.

Event : Pay Per Click (PPC) Summit New York
Date : May 13-14, 2009
Venue : Westin Jersey City Newport
Details : Search Engine Marketing educational conference teaches online marketers how to make more money with Pay Per Click advertising. During two-days of comprehensive training in cities across the U.S., PPC Summit offers laser-focused educational sessions to help online advertisers increase their ROI and maximize their marketing dollars.

Event : 3rd Annual a4u awards 2009
Date : June 2, 2009
Venue : Park Lane Hotel, London
Details : Matthew Wood and his team at Existem, the company that brought you the industry leading a4uexpo Conference and Exhibition, have adopted this need for recognition and have therefore decided to celebrate the industry we all belong to by producing a glittering black tie award ceremony at the Park Lane Hotel, London.

Event : Denver Affiliate Convention
Date : June 17-20, 2009
Venue : Colorado Convention Center
Details : The Affiliate Convention (Denver) will be held June 17-20, 2009 with sessions occuring on June 18th-19th at the Colorado Convention Center.

Event : eComXpo Summer 2009
Date : Summer, 2009
Venue : Online
Details : The next eComXpo event is schedule for Summer, 2009. eComXpo is the first online virtual tradeshow for eCommerce Marketers. Offering an easy, quick way to keep up with this rapidly evolving marketplace including email, search, affiliate, regulatory, branding, advertising, and technology trends and challenges. All the benefits of a top tradeshow, without the costs, hassles or travel of traditional tradeshows. This year sees the show launch a new format and user interface.

Event : Affiliate Summit East
Date : August 9-11, 2009
Venue : Hilton New York
Details : Affiliate Summit was founded by Missy Ward and Shawn Collins in 2003 for the purpose of providing educational sessions on the latest industry issues and fostering a productive networking environment for affiliate marketers.

Event : Commission Junction University 2009
Date : September 15-17, 2009
Venue : TBD. Santa Barbara, California
Details : Enjoy unparalleled educational content and superior networking events, and meet with industry experts, leading advertisers and publishers as they come together to share knowledge and strengthen performance marketing skills and relationships.

Event : Pay Per Click (PPC) Summit Los Angeles
Date : Sept. 23-24, 2009
Venue : Renaissance Hollywood Hotel & Spa
Details : Search Engine Marketing educational conference teaches online marketers how to make more money with Pay Per Click advertising. During two-days of comprehensive training in cities across the U.S., PPC Summit offers laser-focused educational sessions to help online advertisers increase their ROI and maximize their marketing dollars.

Event : Casino Affiliate Convention
Date : September 2009
Venue : Holiday Inn Lesnaya Moscow
Details :The Casino Affiliate Convention (Moscow 2008) event will focus entirely on Marketing and Advertising for Eastern European and Russian based affiliates the Gaming Industry. It will be held in September at the Holiday Inn Hotel Lesnaya in Moscow.

Event : a4u Expo London 2009
Date : October 13-14, 2009
Venue : ExCeL Centre, London
Details : Learn strategies to increase your online revenue by embracing Affiliate Marketing and it's related channels including, SEO, Paid Search (PPC), Cashback, Video, Mobile, PR and Social Media. 40+ sessions, wi-fi, slides, conference bag, refreshments, lunch, dinner, 4 vertical events, 3 parties with beer and wine to kick start your networking!

Affiliate Marketing just Take an Action Now

Internet marketing is really possible for anyone to do. The cost of having your own website is about $10 a month, after you buy a domain name for about $15. So, the first month is about $25, then $10 each month thereafter. The only output that is required of you is your time. And that is where most first time affiliate marketers make their biggest mistakes. They do not really appreciate that old, time is money, adage. Most new marketers are hell bent on being able to say that they spend only $10/month and they want to insert $10,000/month as profit. That would be great, of course, and it can happen, but it’s going to take a lot longer to do if you don’t invest a little bit to get started in the right direction.
There are $100 guides and tutorials that can get you started in the right direction much faster than if you floundered around forums for months trying a little bit of this and that. This is not an article that attempts to sell you anyone of these things. This article is selling the concept of time is money. Would you rather spend $100 on a set of video tutorials that taught you how to how to make $100/day in a month, or spend $0, and search and search forums for a year before you were able to make $100/day? The answer is pretty clear to me, I would spend the $100 immediately so I could become profitable in a much smaller time frame. However, many people say that they know they can find the information for free on the Internet, and there is no need to spend money on information that can be found for free. And they are told that this mindset is correct by forum owners. Forum owners who stand to profit more when beginners stay searching their threads hopelessly for hours on end.
The information is probably in these forums somewhere, but it will take you months to piece together everything to become profitable. And the harsh reality is that the most successful marketers don’t sit in forums giving away all their best secrets. The only way you get one on one advice and coaching is by paying for it. This is not necessarily a bad thing at all. It saves you tons of time with minimal financial outlay. Time is money, so the sooner you learn the right information, the sooner you will start to profit. Of course, you are going to want to ask around or do your homework about programs that are worth the money. But do this research and just buy something good. Forums will waste your time all day long. No one is going to answer all of the 5,000 questions that must be answered to get started for free. You need to pay for that, but the cost is in the hundreds of dollars, not 10s of thousands or 100s of thousands like a college education. Take action
. Just don’t sit in forums, it’s death.

Some Tips And instructions


This information is aimed at people who are new to affiliate marketing. Most of these tips are widely known and we don't pretend to have the "Big Secret" to success. If there really is a big secret at all, it undoubtedly would have to be: "work hard." We hope that the information provided here helps you get rolling down the road to affiliate marketing success. We also hope it will save you a little time and money in the process. Some of the below suggestions are pretty obvious ones, but sometimes it's nice to have someone else tell you that the obvious answer is a good one. Please also feel free to visit our 10 page Affiliate Training section.

Choose a topic you know

 The most common question asked by people new to affiliate marketing is "What should I start with?" We believe it is best to start with an area you know well. Doing this may not be the best converting, provide you with the highest commission, or even be the best managed program. But it is easy for you to build a site, and it's a subject you know and are interested in. That means you can add your own personal touch and opinions to the site. If you try to build your first site from something in which you have no personal interest, the site soon becomes a painful and boring task. Stick with what you know initially and then grow from there.

Banners

 Banners, and More Banners. If success at affiliate marketing could be achieved from throwing up pages of banners - then the world would have many more millionaires. A site with pages of banners or rows banners stuffed under content, not only doesn't make a person want to click the banner; it also has the added bonus of making your site look pretty ugly.

There is no Best Merchant Program. Some people can succeed with a merchant where many others have failed. It is often true that some do poorly where others are making a fist full of dollars. Forums are full of posts that begin with, "My Sales this month for Merchant Program X are very poor." These same posts usually end with some one else posting, "Funny my sales are great." Remember that for your first site select a merchant based on what you know. In the early days, when you have just one small site, it will be easy to swap out all the links if the chosen merchant doesn't work out.

Use multiple merchants in the same niche. As suggested, select a merchant based on what you like, or better yet select a few. Promoting 3-4 merchants on the same site gives your site visitors a variety of destinations to choose from. Doing this provides you with data on what your visitors want to see, and can provide you with important information on how well the different merchants perform against each other when put head to head.

There is no Best Network. Another question commonly asked is, "What is the best network?" Everyone has their own reply to this question, and ultimately there is no best answer. This is especially true when you consider that many great programs don't even belong to a network at all. Every network has its strong points. Make your network selection based on the tools it provides for you. Also take into consideration if the network has the merchants you want to work with. Sometimes joining an undesirable Network is necessary because they have a merchant you really want to sign up with. Our recommendation is to try a merchant from all the main networks, see what works for you, and then focus your time accordingly.

What are Content Sites. If you visit affiliate marketing forums you'll hear people talk about "content sites." These are sites that provide potentially educational and topical content about the products they are promoting, or appear to promote products as a side focus. Content sites are easier to build when you know about the products you are promoting, or the merchant makes content available to you. However, don't forget the goal of your site is to make your site visitors click off of your site onto a merchant's store. No click-through means no sale.

What are Data (Product Info) Sites. Data driven sites are generally limited to pure product data, prices, images, descriptions, there's no illusion of education here. It's all about promoting the product and making the visitor get off your site as fast as possible and onto the merchant's store. Data driven sites generally require access to data feeds and some knowledge of programming or access to software (or scripts) which can produce web pages from the data feeds.

Parasites .

You will see a lot of sites that talk about "Parasites", "ParasiteWare" and "ScumWare." All of these are applications that can redirect, overwrite, or intercept your visitors (and therefore YOUR commission) and change your visitor into their visitor. The majority of these masquerade as shopping support software, file sharing applications, browser help objects (BHOs), and even hidden applications installed on a user's PC via drive-by installs or in bundled software packages. To learn more, and there is an awful lot to learn, please visit www.parasiteware.com. Most ParasiteWare also has various traits of SpyWare. Also click here to learn how you can help consumers protect themselves and your affiliate marketing revenue

Building your first Site. It does help to know HTML and the ability to use graphics software. Knowledge of these areas gives you the ability to add small touches of class to your site. However don't be discouraged if you have no skills in these areas. It is not always necessary to be skilful as there are a number of tools and merchants around that can help you get your first site up and launched. These include page generation tools and fast launch sites. These tools are great for getting rolling but always remember to do some customization of anything you get automated to ensure it is uniqueness to you. Search engines and directories will remove duplicate content.

Buying a domain name. Geocities and Homestead undeniably have their place in the Internet world; however, registering a domain with them generally is not a very wise decision. Many search engines and directories won't list such sites because of their transient nature. In addition to the pitfall of not showing up in search engines, some affiliate managers will skip over your site as they deem it to be a "Personal home page." It is best to get a top level domain (TLD) name and some cheap, but reliable, hosting. When considering a domain name, first think about what you are going to promote and then base your domain name on it. Don't buy the domain name first and then later think about what you'll promote on the site.

Work at it. While it is the ultimate aim of every affiliate partner not to have to do any work, the reality is, especially early on, there's a lot of work to be done. Whether it's in the site's design, updates, education or reading stats, there is a lot to do. The pay-offs aren't instant and it can take a fair few months before you're even making enough to even cover your costs. It takes perseverance, dedication and patience to succeed, don't quit if your first attempts don't pay off.

Educate yourself. Education is an immensely important part of affiliate marketing. There is a heck of a lot to learn. Educating yourself on basic principles of HTML, programming, data feed manipulation, creating custom links, or learn how to identify a good niche in a way that others have overlooked. The affiliate forums are certainly one of the best places to start this education. Invest in and read affiliate marketing books by affiliates such as James Martell

The next step

 Once you have that first site up and it's making money, then it's time to start to expand. Using what you have learned by building that first site, move on to a new project. Leave the first site to keep making money, making adjustments, and any needed updates, but generally letting it do its thing. Your next site is likely to be a site in an area you've seen other affiliates having lots of success. It makes sense to follow the money, but remember it can be a crowded market place when everyone is after the same thing. Don't overlook small niche products, items that might not get the huge traffic but should convert well due to limited availability or being in a special interest group. These markets can often be far less crowded and easier to make quick sales on compared to the bigger more crowded programs.

Cookie Stuffing

Cookie stuffing involves placing an affiliate tracking cookie on a website visitor's computer without their knowledge, which will then generate revenue for the person doing the cookie stuffing. This not only generates fraudulent affiliate sales, but also has the potential to overwrite other affiliates' cookies, essentially stealing their legitimately earned commissions.

Click To Reveal

Many voucher code web sites use a click to reveal format, which required the web site user to click to reveal the voucher code. The action of clicking places the cookie on the website visitor's computer. The IABhave stated that "Affiliates must not use a mechanism whereby users are encouraged to click to interact with content where it is unclear or confusing what the outcome will be.

Sales Tax Vulnerbility

In April 2008 the State of New York inserted an item in the state budget asserting sales tax jurisdiction over Amazon.com sales to residents of New York, based on the existence of affiliate links from New York–based websites to Amazon.The state asserts that even one such affiliate constitutes Amazon having a business presence in the state, and is sufficient to allow New York to tax all Amazon sales to state residents. Amazon challenged the amendment and lost at the trial level in January, 2009. The case is currently making its way through the New York appeals courts.

Marketing Term

Members of the marketing industry are recommending that "affiliate marketing" be substituted with an alternative name.Affiliate marketing is often confused with either network marketing or multi-level marketing. Performance marketing is a common alternative, but other recommendations have been made as well.

Threat to Traditional Affiliate Network

Cost per action networks can be viewed as a threat to "classic" affiliate marketing networks. Traditional affiliate marketing is resource-intensive and requires continual maintenance. Most of the maintenance includes managing, monitoring, and supporting affiliates. The goal of affiliate marketing is directed toward long-term and mutual beneficial partnerships between advertisers and affiliates. Cost per action networks, however, eliminate the need for the advertiser to build and maintain relationships to affiliates, as that task is performed for the advertiser by the cost per action network. The advertiser makes an offer, almost always CPA-based, and the cost per action networks handle the remainder of the process by mobilizing their affiliates to promote that offer. Cost per sale and revenue sharing are the primary compensation models for classic affiliate marketing, and are rarely found in cost per action networks. Affiliate marketers typically avoid the topic of cost per action networks; however, if it is being discussed, the debates can become heated and explosive.

Shortness of Industry Standard

Affiliate marketing currently lacks industry standards for training and certification. There are some training courses and seminars that result in certifications; however, the acceptance of such certifications is mostly due to the reputation of the individual or company issuing the certification. Affiliate marketing is not commonly taught in universities, and only a few college instructors work with Internet marketers to introduce the subject to students majoring in marketing.Education occurs most often in "real life" by becoming involved and learning the details as time progresses. Although there are several books on the topic, some so-called "how-to" or "silver bullet" books instruct readers to manipulate holes in the Google algorithm, which can quickly become out of date,or suggest strategies no longer endorsed or permitted by advertisers.Outsourced Program Management companies typically combine formal and informal training, providing much of their training through group collaboration and brainstorming. Such companies also try to send each marketing employee to the industry conference of their choice

Other training resources used include online forums, weblogs, podcasts, video seminars, and specialty websites.

Affiliate Summit is the largest conference in the industry, and many other affiliate networks host their own annual events.

Shortness of Collaboration And Regulation

Affiliate marketing is driven by entrepreneurs who are working at the edge of Internet marketing. Affiliates are often the first to take advantage of emerging trends and technologies. The "trial and error" approach is probably the best way to describe the operation methods for affiliate marketers. This risky approach is one of the reasons why most affiliates fail or give up before they become successful "super affiliates", capable of generating US$10,000 or more per month in commission. This "frontier" life combined with the attitude found in such communities is likely the main reason why the affiliate marketing industry is unable to self-regulate beyond individual contracts between advertisers and affiliates. Affiliate marketing has experienced numerous failed attempts to create an industry organization or association of some kind that could be the initiator of regulations, standards, and guidelines for the industry.Some examples of failed regulation efforts are the Affiliate Union and iAfma.

Online forums and industry trade shows are the only means for the different members from the industry—affiliates/publishers, merchants/advertisers, affiliate networks, third-party vendors, and service providers such as outsourced program managers—to congregate at one location. Online forums are free, enable small affiliates to have a larger say, and provide anonymity. Trade shows are cost-prohibitive to small affiliates because of the high price for event passes. Larger affiliates may even be sponsored by an advertiser they promote.

Because of the anonymity of online forums, the quantitative majority of industry members are unable to create any form of legally binding rule or regulation that must be followed throughout the industry. Online forums have had very few successes as representing the majority of the affiliate marketing industry. The most recent example of such a success was the halt of the "Commission Junction Link Management Initiative" (CJ LMI) in June/July 2006, when a single network tried to impose the use of a Javascript tracking code as a replacement for common HTML links on its affiliates.

TradeMark Bidding

Affiliates were among the earliest adopters of pay per click advertising when the first pay-per-click search engines emerged during the end of the 1990s. Later in 2000 Google launched its pay per click service, Google AdWords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel. An increasing number of merchants engaged in pay per click advertising, either directly or via a search marketing agency, and realized that this space was already well-occupied by their affiliates. Although this situation alone created advertising channel conflicts and debates between advertisers and affiliates, the largest issue concerned affiliates bidding on advertisers names, brands, and trademarks. Several advertisers began to adjust their affiliate program terms to prohibit their affiliates from bidding on those type of keywords. Some advertisers, however, did and still do embrace this behavior, going so far as to allow, or even encourage, affiliates to bid on any term, including the advertiser's trademarks.

Adware

Although it differs from spyware, adware often uses the same methods and technologies. Merchants initially were uninformed about adware, what impact it had, and how it could damage their brands. Affiliate marketers became aware of the issue much more quickly, especially because they noticed that adware often overwrites tracking cookies, thus resulting in a decline of commissions. Affiliates not employing adware felt that it was stealing commission from them. Adware often has no valuable purpose and rarely provides any useful content to the user, who is typically unaware that such software is installed on his/her computer.

Affiliates discussed the issues in Internet forums and began to organize their efforts. They believed that the best way to address the problem was to discourage merchants from advertising via adware. Merchants that were either indifferent to or supportive of adware were exposed by affiliates, thus damaging those merchants' reputations and tarnishing their affiliate marketing efforts. Many affiliates either terminated the use of such merchants or switched to a competitor's affiliate program. Eventually, affiliate networks were also forced by merchants and affiliates to take a stand and ban certain adware publishers from their network. The result was Code of Conduct by Commission Junction/beFree and Performics,
LinkShare's Anti-Predatory Advertising Addendum,and ShareASale's complete ban of software applications as a medium for affiliates to promote advertiser offers.Regardless of the progress made, adware continues to be an issue, as demonstrated by the class action lawsuit against ValueClick and its daughter company Commission Junction filed on April 20, 2007.

Counter measure

The implementation of affiliate marketing on the internet relies heavily on various techniques built into the design of many web-pages and web-sites, and the use of calls to external domains to track user actions (click tracking, Ad Sense) and to serve up content (advertising) to the user. Most of this activity adds time and is generally a nuisance to the casual web-surfer and is seen as visual clutter. Various countermeasures have evolved over time to prevent or eliminate the appearance of advertising when a web-page is rendered. Third party programs (Ad Aware, SpyBot, pop-up blockers, etc.) and particularly, the use of a comprehensive HOSTS file (on systems running MS Windows) can effectively eliminate the visual clutter and the extra time and bandwidth needed to render many web pages.

Search Engine Spam

As search engines have become more prominent, some affiliate marketers have shifted from sending e-mail spam to creating automatically generated webpages that often contain product data feeds provided by merchants. The goal of such webpages is to manipulate the relevancy or prominence of resources indexed by a search engine, also known as spamdexing. Each page can be targeted to a different niche market through the use of specific keywords, with the result being a skewed form of search engine optimization.

Spam is the biggest threat to organic search engines, whose goal is to provide quality search results for keywords or phrases entered by their users. Google's PageRank algorithm update ("BigDaddy") in February 2006—the final stage of Google's major update ("Jagger") that began in mid-summer 2005—specifically targeted spamdexing with great success. This update thus enabled Google to remove a large amount of mostly computer-generated duplicate content from its index.
Websites consisting mostly of affiliate links have previously held a negative reputation for underdelivering quality content. In 2005 there were active changes made by Google, where certain websites were labeled as "thin affiliates".

Such websites were either removed from Google's index or were relocated within the results page (i.e., moved from the top-most results to a lower position). To avoid this categorization, affiliate marketer webmasters must create quality content on their websites that distinguishes their work from the work of spammers or banner farms, which only contain links leading to merchant sites.

Some commentators originally suggested that Affiliate links work best in the context of the information contained within the website itself. For instance, if a website contains information pertaining to publishing a website, an affiliate link leading to a merchant's Internet service provider (ISP) within that website's content would be appropriate. If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports. The goal in this case is to publish quality information within the website and provide context-oriented links to related merchant's websites.

However, more recent examples exist of "thin" Affiliate sites which are using the Affiliate Marketing model to create value for Consumers by offering them a service. These thin content service Affiliate fall into three categories:

  •     Price comparison
  •     Cause related marketing
  •     Time saving

E-mail (Spam)

In the infancy of affiliate marketing, many Internet users held negative opinions due to the tendency of affiliates to use spam to promote the programs in which they were enrolled.As affiliate marketing matured, many affiliate merchants have refined their terms and conditions to prohibit affiliates from spamming.

Past And Current Issues

Since the emergence of affiliate marketing, there has been little control over affiliate activity. Unscrupulous affiliates have used spam, false advertising, forced clicks (to get tracking cookies set on users' computers), adware, and other methods to drive traffic to their sponsors. Although many affiliate programs have terms of service that contain rules against spam, this marketing method has historically proven to attract abuse from spammers.
E-mail spam

Locating Affiliate Programs

There are three primary ways to locate affiliate programs for a target website:

    *Affiliate program directories,
    Large affiliate networks that provide the platform for dozens or even hundreds of advertisers, and
    The target website itself. (Websites that offer an affiliate program often have a link titled "affiliate program", "affiliates", "referral program", or "webmasters"—usually in the footer or "About" section of the website.)

If the above locations do not yield information pertaining to affiliates, it may be the case that there exists a non-public affiliate program. The most definitive method for finding this information is to contact the website owner directly.

Predominant Compensation Method

Eighty percent of affiliate programs today use revenue sharing or cost per sale (CPS) as a compensation method, nineteen percent use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM).

Affiliate Management

Successful affiliate programs require significant work and maintenance. Having a successful affiliate program is more difficult than when such programs were just emerging. With the exception of some vertical markets, it is rare for an affiliate program to generate considerable revenue with poor management or no management (i.e., "auto-drive").

Uncontrolled affiliate programs did—and continue to do so today—aid rogue affiliates, who use spamming,
trademark infringement, false advertising, "cookie cutting"[citation needed], typosquatting,

and other unethical methods that have given affiliate marketing a negative reputation.

The increased number of Internet businesses and the increased number of people that trust the current technology enough to shop and do business online allows further maturation of affiliate marketing. The opportunity to generate a considerable amount of profit combined with a crowded marketplace filled with competitors of equal quality and size makes it more difficult for merchants to be noticed. In this environment, however, being noticed can yield greater rewards.

Recently, the Internet marketing industry has become more advanced. In some areas online media has been rising to the sophistication of offline media, in which advertising has been largely professional and competitive. There are significantly more requirements that merchants must meet to be successful, and those requirements are becoming too burdensome for the merchant to manage successfully in-house. An increasing number of merchants are seeking alternative options found in relatively new outsourced (affiliate) program management (OPM) companies, which are often founded by veteran affiliate managers and network program managers.[
OPM companies perform affiliate program management for the merchants as a service, similar to advertising agencies promoting a brand or product as done in offline marketing.

Pros And Cons (Advantage and DisAdvantage)

Merchants favor affiliate marketing because in most cases it uses a "pay for performance" model, meaning that the merchant does not incur a marketing expense unless results are accrued (excluding any initial setup cost).Some businesses owe much of their success to this marketing technique, a notable example being Amazon.com. Unlike display advertising, however, affiliate marketing is not easily scalable.

Some merchants run their own (i.e., in-house) affiliate programs using popular software while others use third-party services provided by intermediaries to track traffic or sales that are referred from affiliates (see outsourced program management). Merchants can choose from two different types of affiliate management solutions: standalone software or hosted services, typically called affiliate networks. Payouts to affiliates or publishers are either made by the networks on behalf of the merchant, by the network, consolidated across all merchants where the publisher has a relationship with and earned commissions or directly by the merchant itself.

Your Performance in Marketing ?

n the case of cost per mille/click, the publisher is not concerned about a visitor being a member of the audience that the advertiser tries to attract and is able to convert, because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss (if the visitor can not be converted) to the advertiser.

Cost per action/sale methods require that referred visitors do more than visit the advertiser's website before the affiliate receives commission. The advertiser must convert that visitor first. It is in the best interest for the affiliate to send the most closely targeted traffic to the advertiser as possible to increase the chance of a conversion. The risk and loss is shared between the affiliate and the advertiser.

Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding targeted baselines

Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.

The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect signs the contract or completes the purchase.

Development in Affiliate Networking

Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005.MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.Currently the most active sectors for affiliate marketing are the adult, gambling, retail industries and file-sharing services.The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors.Soon after these sectors came the entertainment (particularly gaming) and Internet-related services (particularly broadband) sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix.

Concepts about Affiliate Marketing

The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million dollars per year on the Prodigy service. In 1989, PC Flowers and Gifts developed the business model of paying a commission on sales to The Prodigy network (Reference-Chicago Tribune-Oct, 4, 1995).(Ref The Sunsentinal 1991 and www.dankawaski.com). Mr. Tobin applied for a patent on tracking and affiliate marketing on January 22, 1996 and was issued U.S. Patent number 6,141,666 on Oct 31, 2000. Mr. Tobin also received Japanese Patent number 4021941 on Oct 5, 2007 and U.S. Patent number 7,505,913 on Mar 17, 2009 for affiliate marketing and tracking (Reference-Business Wire-Jan, 24, 2000).

Cybererotica was among the early innovators in affiliate marketing with a cost per click program.

During November 1994, CDNOW launched its BuyWeb program. CDNOW had the idea that music-oriented websites could review or list albums on their pages that their visitors may be interested in purchasing. These websites could also offer a link that would take the visitor directly to CDNOW to purchase the albums. The idea for remote purchasing originally arose because of conversations with music label Geffen Records in the fall of 1994. The management at Geffen wanted to sell its artists' CDs directly from its website, but did not want to implement this capability itself. Geffen asked CDNOW if it could design a program where CDNOW would handle the order fulfillment. Geffen realized that CDNOW could link directly from the artist on its website to Geffen's website, bypassing the CDNOW home page and going directly to an artist's music page.[4]

Amazon.com (Amazon) launched its associate program in July 1996: Amazon associates could place banner or text links on their site for individual books, or link directly to the Amazon home page.[citation needed]

When visitors clicked from the associate's website through to Amazon and purchased a book, the associate received a commission. Amazon was not the first merchant to offer an affiliate program, but its program was the first to become widely known and serve as a model for subsequent programs.

In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com (October 1994), AutoWeb.com (October 1995), Kbkids.com/BrainPlay.com (January 1996), EPage (April 1996), and several others.

What is affiliate Networking ?

Affiliate marketing is a marketing practice in which a business rewards one or more Affiiliates for each visitor or customer brought about by the affiliate's marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the Network the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third parties vendors.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization, paid search engine, mail marketing, and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.
Affiliate marketing—using one website to drive traffic to another—is a form of online marketing, which is frequently overlooked by advertisers
While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies